Tata Elxsi Rallies After Quarterly Growth, Analysts Stay Cautious
The company posted higher September-quarter profit and revenue, while brokerages pointed to valuation concerns and a slow European auto market.
Key takeaways
- Tata Elxsi reported quarterly net profit of ₹170 crore, up 10% year on year.
- Revenue from operations rose 15% to ₹1,056 crore.
- Morgan Stanley, Motilal Oswal and JM Financial kept cautious ratings on the shares.
Tata Elxsi shares rose after the company reported a 10% year-on-year increase in September-quarter net profit to ₹170 crore. Revenue from operations grew 15% to ₹1,056 crore.
As of 04:35 UTC on Wednesday, the shares traded at ₹3,677, up 7.3% since the previous close.
Total income, including other income, increased 13% to ₹1,090 crore. Other income fell to ₹35 crore from ₹49 crore a year earlier.
Brokerages remained cautious despite the results. Morgan Stanley kept its Underweight rating and ₹3,400 target, citing rich valuations and the need for sustained growth. It said constant-currency revenue growth of 2.3% quarter on quarter beat its 1.6% estimate.
Motilal Oswal maintained a Sell rating with a ₹2,970 target, saying growth would depend on converting deal wins into revenue. JM Financial kept its Reduce call, while Nirmal Bang reiterated Hold; both cited continued uncertainty around European automotive demand.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
